The IRS 1099-DA crypto reporting requirements take effect for the first time on Tax Day 2026, requiring every American who sells or trades in digital assets in 2025 to account for those transactions, while the Treasury Department reports that 53 million filers are already seeking the new exemption from Trump.
Summary
- Form 1099-DA is now a mandatory IRS reporting form for 2025 digital asset transactions filed by merchants, although basic reporting remains voluntary for the first year, creating a gap that crypto holders must fill themselves.
- The Treasury says 53 million Americans took advantage of new Trump-era exemptions including tax-free tips and overtime, auto loan interest deductions, and Trump child savings accounts, with the average refund rising 11% to $3,462.
- IRS Commissioner Frank Bisignano testified before the Senate Finance Committee on Tax Day touting the implementation of the Republican tax law while Democrats focused on IRS data sharing agreements with ICE.
IRS 1099-DA crypto obligations are real and unavoidable for the first time this filing season. The IRS’s first dedicated digital asset reporting form, a simplified version of an earlier draft that dropped requirements for wallet addresses and transaction IDs, went into mandatory use for consumers covering all digital asset transactions by 2025.
But 53 million Americans are also sitting down today to take advantage of an entirely different set of tax reforms, a Trump-era exemption that has reshaped this year’s season.
Effective in 2025, custodial brokers were required to submit a Form 1099-DA that includes gross income by February 17, 2026. Catch: reporting basis is voluntary by 2025. That means most 1099-DA forms don’t include cost basis, and the IRS has been reporting to find the loss or basis:
Crypto owners who treat their 1099-DA as a complete document and do not reconcile it with their transaction records face a significant risk of discrepancies when the IRS begins divulging merchant data. Every taxpayer must also answer the digital asset question on Form 1040, yes or no, regardless of whether they received a 1099-DA. Those who skip answer incorrectly under penalty of perjury.
Investors who need to calculate their profits and losses have a number of tracking tools available, as the restructuring of the base in all wallets, exchanges, DeFi positions, and stake activity falls entirely on the taxpayer this year.
The Big Picture of Tax Day
On the non-crypto side, the Treasury says the 2026 filing season has set several records for new takeover releases. More than 53 million filers sought at least one new provision in the Republican tax law, including 6 million that claimed no tax on tips, as well as tax exemptions on certain car loan interest, capital gains deductions, and Trump Accounts, a savings vehicle for children introduced in the bill.
The average return stands at $3,462, up 11% from $3,116 last year. “People are getting refunds of $5,000, $8,000, $11,000 that they didn’t know they were getting,” Trump told Fox Business on Wednesday.
Political Background
IRS Commissioner Frank Bisignano testified before the Senate Finance Committee on Tax Day, and his prepared remarks praised the agency’s implementation of the Republican tax law. Democrats have shifted focus to IRS and ICE data sharing agreements, raising concerns about confidential taxpayer information going to immigration enforcement. The IRS workforce has been reduced by 27% in the past year through DOGE-driven cuts.
For crypto owners, the position of management is more important than ever. Starting in the 2026 tax year, mandatory reporting begins, which means the pressure to comply with the 1099-DA only increases from here.
